Architecture / June 26, 2018 /
Clients who prioritise cost over speed or who require fixed price lump sums will generally experience longer development programmes, as designs must be substantially completed before tenders can be obtained. This process may take a considerable amount of time as careful thought is required to develop and refine the scheme design. The design, in turn, influences the contractors construction methods which determine length of time taken to complete the contract on site.
Procurement refers to the process of obtaining goods and services from another for some consideration. They describe the process as being simple in theory – balancing quality, time and cost priorities, but complicated in practice by legislation, the need to achieve value for money, demonstrate accountability and coordinate consultant and contractual roles and obligations to achieve a satisfactory outcome. The procurement strategy identifies how the project is structured and establishes where responsibility for design is to be placed, how the work is to be co-ordinated, and on what price basis the contract is to be awarded. The procurement strategy also directly affects the level of risk borne by the contractor and leads to choices regarding the conditions under which the work will be executed. These risks must be appraised and managed by the contractor and has a direct impact on the price tendered by the Contractor